EU Negotiates Tariff Issues with the US Amid Rising Trade Tensions

The European Union is very shortly to begin new negotiations with the United States. Their stated intent is to address tariffs that have been a flashpoint in trade relations. A 20% blanket tariff on various goods has been suspended for 90 days, allowing both sides to engage in discussions to resolve ongoing trade disputes. This move follows on the heels of the U.S. imposing a 10% tariff across the board on all EU imports that went into effect on April 2nd. It applies a new 25% surcharge on steel, aluminum, and cars.

In a recent meeting, French President Emmanuel Macron and European Commission President Ursula von der Leyen narrowed in on negotiations. The way they had that discussion was riveting. These discussions hope to eliminate all the tariffs the US has enacted. These tariffs were the last in a volley of tariffs that had started volleying mid-March against the EU.

The setting of these negotiations is a round of tit-for-tat tariffs that Trump started and further inflamed the ongoing situation. The US’s 10% blanket tariff is an enormous obstacle. Both parties are continuing to diligently pursue the removal of this and other tariffs. Their imposition, along with retaliatory tariffs from their affected countries, increases fears of an impending trade war. Yet on both sides there is an ironclad commitment to economic self-interest.

Throughout the debates, Maroš Šefčovič, Vice President of the European Commission, repeatedly stressed the EU’s negotiating strength.

“We are not weak, under undue pressure, to accept a deal which is unfair to us.” – Maroš Šefčovič

French officials have made the same arguments, laying out in stark terms the unacceptable and dangerous trade imbalance that needs to be addressed — now. One official remarked,

“This asymmetrical situation must not become the new norm in the relationship between the EU and the US.” – French official

The US tariffs have fundamentally changed the conversation around our dependence on raw materials. In addition, they have drawn attention to the issue of overcapacity in steel production. Now, both parties have recognized the need to address these underlying issues with bipartisan solutions.